Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Here are returns:

Stock-A Market
Yr-1 14% 12%
Yr-2 19 10
Yr-3 -16 -12
Yr-4 3 1
Yr-5 20 15

a) find out the beta for A.

b) find out the required rate of return for A.

c) Assume stock A”s return is 23%, is stock fairly valued?

2) Suppose company will spend $800,000 on piece of equipment which will manufacture fine wire for electronics industries. Shipping and installation charges will be= $240,000 and net working capital will increase $48,000.Eequipment will replace the existing machine which has salvage value of $75,000 and book value of $125,000. If firm has present marginal tax rate of 34%, find out the net investment?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914501

Have any Question? 


Related Questions in Basic Finance

1 deriving from the conclusion of proposition i what is the

1. Deriving from the conclusion of Proposition I, what is the crux of M&M Proposition II? What is the natural relationship between the required returns on debt and on equity that results from Proposition II? 2. In what w ...

How would the following events affect the demand for

How would the following events affect the demand for loanable funds in the United States? a. Many U.S. cities increase business taxes to help close their budget deficits. b. Widespread use of handheld computers helps red ...

1 what is the difference between the short position and the

1. What is the difference between the short position and the long position in a futures market? 2. Give an example of how someone might hedge using a commodity futures and give an example of how someone might hedge using ...

Design a one-way experiment to test each of the given

Design a one-way experiment to test each of the given research hypotheses: a. The more a person tries not to think of something, the more he or she will actually end up thinking about it. b. People are more helpful when ...

Explain the advantages and disadvantages to a call buyer of

Explain the advantages and disadvantages to a call buyer of closing out a position prior to expiration rather than holding it all the way until expiration? Suppose that one is considering buying a call at a particular ex ...

Many grocery stores and large retailers such as wal-mart

Many grocery stores and large retailers such as Wal-Mart and K-Mart have installed self checkout systems so shoppers can scan their own items and cash out themselves. How do customers like this service and how often do t ...

1 discuss how error accountability can be a major factor in

1. Discuss how error accountability can be a major factor in improving forecast performance. 2. Discuss how a minor change in demand at the retail level can significantly impact supply chain variation at distributors, ma ...

What is the goal with regard to managing accounts payable

What is the goal with regard to managing accounts payable as it relates to the cash conversion cycle? Briefly describe the process involved in managing the accounts payable function.

In a mass-transfer spray column a liquid is sprayed into a

In a mass-transfer spray column, a liquid is sprayed into a gas stream, and mass is transferred between the liquid and gas phases. The mass of the drops that are formed from a spray nozzle is considered a function of the ...

1 what benefits do flexible unit-load materials have in

1. What benefits do flexible unit-load materials have in contrast to rigid containers? How do return or reverse logistics considerations impact the two approaches? 2. What trade-offs are involved in the use of returnable ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen